President Joe Biden proposed to set a minimum 15% corporate tax rate to help pay for an infrastructure spending package as an informal counteroffer to Senate Republicans, White House Press Secretary Jen Psaki said Thursday. Biden made the counterproposal during a Wednesday meeting (see 2106020078) with Senate Public Works Committee ranking member Shelley Moore Capito of West Virginia, who's leading GOP negotiators. Biden also asked Republicans to back $1 trillion in new spending. Republicans propose $65 billion for broadband (see 2105270072), a figure the White House is offering to back. Capito’s office confirmed she plans to meet with Biden again Friday. Capito “is encouraged that negotiations have continued,” a spokesperson emailed. Vice President Kamala Harris said Thursday she and Biden “are determined to get to 100%” broadband coverage via an infrastructure package. She helped announce NTIA’s plan to make nearly $1 billion available for tribal broadband (see 2106030065). Lawmakers “worked together” to fund broadband programs via the FY 2021 appropriations and COVID-19 aid packages (see 2012210055) and now “Congress must work together again to bring high-speed Internet to every American,” she said. Other officials emphasized they want talks with Republicans on infrastructure to be completed by when the Senate returns Monday (see 2106010068).
The White House is considering House Communications Subcommittee FCC detailee Parul Desai as a candidate for a third Democratic FCC seat, officials and lobbyists told us. Desai has been Communications’ FCC detailee since September 2019. She was previously FCC Enforcement Bureau Telecom Consumers Division deputy director, a Media Bureau Audio Division attorney adviser and the commission’s open internet ombudsperson right after its rescinded 2015 net neutrality rules took effect (see 1506150057). Desai was also a lawyer for Consumers Union and the Media Access Project. Her role as the ombudsperson is seen as a reason she’s in contention now. President Joe Biden’s eventual nominee for the third FCC Democratic slot is considered crucial to any effort to update net neutrality rules (see 2101060055). Biden also wants people of color in tech policy leadership roles, lobbyists said. Officials weren’t sure whether Desai has a better chance of getting the nod than others including DLA Piper’s Smitty Smith (see 2104280057). Biden faces pressure from Senate Commerce Committee Chair Maria Cantwell of Washington and other Democrats to announce nominees for FCC, FTC and NTIA vacancies. Desai and the White House didn’t comment Wednesday.
The FCC should “enhance the transparency and accountability” of its “operations by publicly reporting on the actions and findings of its Hurricane Recovery Task Force,” after shortcomings when Hurricane Maria hit Puerto Rico and the U.S. Virgin Islands in 2017, the GAO reported Tuesday. House Commerce Committee Chairman Frank Pallone, D-N.J., sought the study in 2019 (see 1910030043). The Public Safety Bureau issued recommendations in 2018 (see 1808240052). The new audit said the commission “did not have the benefit of substantial public input” when assembling that report. The FCC posted a request for comment on its response in December 2017, but “it is unclear the extent to which residents of Puerto Rico and U.S. Virgin Islands were able to respond” before the January 2018 deadline, GAO said. The commission didn’t do a field hearing in Puerto Rico on its Hurricane Maria response until February 2020 (see 2002260041) “because they did not want to overburden Puerto Rico’s restoration efforts.” The FCC has since “not issued a report ... or a full accounting of FCC’s response to Hurricane Maria,” GAO said. “According to FCC officials, the task force has continued to support recovery efforts in Puerto Rico and USVI since the task force’s creation in 2017, but these efforts have not been made public.” So “determine if any changes in policy are needed to ensure FCC has transparent operations for any future disaster-related task force,” in addition to enhancing the Hurricane Recovery Task Force’s transparency, GAO said. The office recommended the Department of Homeland Security work with the FCC to update national response framework guidelines with “specific roles and responsibilities for FCC, including identifying new or evolving technologies that could assist disaster response efforts and supporting training or exercises on the appropriate use of such technologies.” GAO said the framework doesn’t give the FCC a clearly defined role. The FCC and DHS concurred with the recommendations. The FCC noted that “under new leadership, it is taking urgent action to refresh its capabilities and procedures for disaster response,” GAO said.
The White House believes negotiations with Senate Republicans on an infrastructure spending package “need to finish” soon and hopes “there is a clear direction on how to advance” that legislation before the Senate returns June 7, Deputy Press Secretary Karine Jean-Pierre told reporters Tuesday. President Joe Biden plans to meet Wednesday with Senate Public Works Committee ranking member Shelley Moore Capito of West Virginia on Republicans’ most recent infrastructure counteroffer, which includes $65 billion for broadband (see 2105270072), the White House said. Transportation Secretary Pete Buttigieg also pegged June 7 as the date by which there should be “a clear direction” on talks. Jean-Pierre noted June 9, the day the House Infrastructure Committee plans to mark up a surface transportation bill, as “a relevant date in terms of the overall time frame.” This week “will be incredibly critical,” she said: There will be additional “conversations as we move forward … in the next couple days.”
The Senate confirmed Eric Lander to be director of the Office of Science and Technology Policy (see 2105200066), by voice vote Friday.
The House Consumer Protection Subcommittee passed by voice vote Thursday legislation to restore FTC Section 13(b) authority (see 2104280028), despite Republican opposition. The Consumer Protection and Relief Act (HR-2668), from Rep. Tony Cardenas, D-Calif., advanced to the full committee. House Commerce Committee ranking member Cathy McMorris Rodgers, R-Wash., and subcommittee ranking member Gus Bilirakis, R-Fla., criticized a “rushed” legislative process. They cited lack of commissioner input at the bill’s legislative hearing and partial responses from DOJ (see 2105170040). Commerce Chairman Frank Pallone, D-N.J., claimed Republicans didn’t offer any potential changes until Thursday morning. Republicans’ core concern is the potential for lack of due process and proper analysis, said Rodgers. Republicans offered amendments that were ultimately withdrawn. Subcommittee Chair Jan Schakowsky, D-Ill., committed to working with Republicans on provisions including an amendment from Bilirakis that would alter the statute of limitations. Rushing the bill to committee reflects a “broken process,” McMorris Rodgers said. The legislation is “urgently needed,” said Schakowsky: Nothing in the FTC Act can replace authorities gutted by the Supreme Court. Bilirakis “sincerely” appreciates introduction of the bill because it attempts to address a gap in consumer protection, but he accused the majority of wanting to ram this through without bipartisan input. Congress needs to restore FTC authority, said Cardenas.
The Commerce Department’s plan for implementing the pending U.S. Innovation and Competition Act (S-1260) was one of the few tech and telecom policy matters that drew Senate Appropriations Commerce Subcommittee members’ attention during a Wednesday hearing on President Joe Biden’s proposed FY 2022 Commerce Department budget. The administration in April proposed Commerce get $11.4 billion, up almost 28% from FY 2021 (see 2104090041). The administration is expected to release its full budget proposal Friday. Commerce is “hard at work putting together” its plans for implementing S-1260 if it’s enacted, Raimondo told Senate Appropriations Commerce Chairwoman Jeanne Shaheen, D-N.H.: The measure would mean further expansion of Commerce’s scope on semiconductor and open radio access network matters, and the department has “expertise” in expanding to meet its mission. S-1260, previously known as the Endless Frontier Act, includes $52 billion to boost U.S. chipmaking and $1.5 billion to implement the Utilizing Strategic Allied Telecom Act. The semiconductor money includes $49.5 billion to implement the Creating Helpful Incentives to Produce Semiconductors for America Act (see 2105210056). The Senate was expected to continue considering amendments to S-1260 into Thursday, before a potential final vote that day on the measure. Senate Majority Leader Chuck Schumer, D-N.Y., said Wednesday “there’s no reason we can’t finish this bill by the end of the week. That’s my intention.” Senate Appropriations Financial Services Subcommittee Chairman Chris Van Hollen, D-Md., noted his desire for S-1260 to direct Commerce to enter into a National Academies of Science contract to provide updates on emerging tech, saying the U.S. “got caught behind on 5G.” Senate Appropriations Commerce ranking member Jerry Moran, R-Kan., raised concerns about the department’s cybersecurity “shortcomings” given it was a federal agency affected by the Russia-linked SolarWinds hack (see 2012170050). He believes the budget needs to make the department’s “role in closing the digital divide” a priority given the increased importance of telework and remote learning during the pandemic. Sen. Jack Reed, D-R.I., noted his concerns about the entire federal government’s “disjointed” cybersecurity apparatus.
President Joe Biden’s cybersecurity executive order is a welcome step in improving federal cybersecurity (see 2105240072), and GAO’s December supply chain report shows agencies aren’t prepared, House Science Committee members said during a joint hearing Tuesday. The supply chain risk management audit is “truly alarming,” said Investigations Subcommittee ranking member Jay Obernolte, R-Calif. More than half the 23 agencies analyzed didn’t implement basic best practices, he noted, saying this points to a failure of governance. Subcommittee Chairman Bill Foster, D-Ill., questioned whether agencies are doing enough to enforce best practices. The EO calls for bold action, he said. It's a “sea change” in how the federal government approaches cybersecurity, said Research and Technology Subcommittee Chairwoman Haley Stevens, D-Mich. She highlighted the National Institute of Standards and Technology’s role. Research and Technology Subcommittee ranking member Michael Waltz, R-Fla., called the EO a good starting point, saying there’s much work ahead. The auditor report really is “alarming” and shows foundational practices and guidance aren’t being followed, he said. NIST is committed to develop standards, best practices and key guidance for securing critical software, said Information Technology Laboratory Computer Security Division Chief Matthew Scholl. GAO is examining unknowns about the SolarWinds cyberattack, which had unprecedented sophistication, said GAO Information Technology and Cybersecurity Director Vijay D’Souza: The attack wasn’t surprising given findings in December's study.
House Commerce Committee ranking member Cathy McMorris Rodgers, R-Wash., and Communications Subcommittee ranking member Bob Latta, R-Ohio, pressed committee Democrats Tuesday to set an FCC oversight hearing on implementation of the $7.17 Emergency Connectivity Fund and $3.2 billion emergency broadband benefit. EBB and ECF “could be subject to waste, fraud, and abuse,” Latta and Rodgers said in a letter including to Commerce Chairman Frank Pallone, D-N.J. “The Commission still is without a permanent Chair and short-handed with only four commissioners.” The GOP leaders want the committee hearing to examine what they view as acting FCC Chairwoman Jessica Rosenworcel’s “lack” of “commitment to free speech.” They cited the letter Reps. Anna Eshoo and Jerry McNerney, both D-Calif., sent providers in February asking them to justify carrying Fox News, Newsmax and One America News Network (see 2102220068). Rosenworcel “ignored” Commerce Republicans’ “request that she denounce efforts of these Federal government officials to silence speech,” Latta and Rodgers said. Commerce Democrats and the FCC didn’t comment. The committee's last FCC oversight hearing was in September (see 2009170068).
House Agriculture Committee ranking member Glenn Thompson of Pennsylvania and 21 other committee Republicans filed the Broadband for Rural America Act Thursday in a bid to give the Agriculture Department more power to oversee rural connectivity buildout at the FCC's expense. The measure would codify USDA’s ReConnect broadband program and set annual funding for its rural connectivity programs at $3.7 billion. It would set minimum speeds for recipients’ services at 25 Mbps download and 3 Mbps upload. USDA “is the one that has the expertise” to effectively oversee rural broadband buildout, Thompson told reporters Thursday. The FCC “had their chance and they haven’t gotten it done,” said Rep. Austin Scott, R-Ga.